All businesses require money to operate. That’s a fact and it’s indisputable. Your expenses include insurance, marketing materials, phones and cleaning supplies to name just a few.
The key to running a profitable cleaning business is keeping those costs to a minimum. This may come across as a pretty simple lesson, but many people probably spend more than they realize.
I know this lesson firsthand, as it has bitten me in the backend a few times over the years. Despite “thinking” I was doing a great job at keeping my costs in check I had a few areas where my spending was not so frugal.
The lesson my accountant taught me about expenses
I remember asking my accountant one time how my expenses looked. Did anything stand out? I really wanted to know where I stood in relation to other companies. It didn’t have to be a cleaning company, just other businesses in general.
At a glance he told me I was spending too much for both my landlines and my cell phones. Then he looked a little further and said I spent too much for eating out and that I should also reevaluate what I spent for my office.
He thought I could do better if I just tried a little harder! Now you have to keep in mind the fact that I really trust my accountant’s wisdom. He is not some small little hometown number cruncher with just a few clients.
The guy is super successful in several different finance related businesses so I take his word as the gospel as far as money goes. Before leaving his office he told me something very important. Something that has shaped the way I look at everything.
He told me flat-out that “every single expense in your business needs to be constantly reevaluated”. Not once in a blue moon, but regularly. If you don’t do this your business will get fat around the waist. When this happens it may be too late to fix it.
He went on to say that much like a person putting on weight, “it happens so slowly you don’t realize it at first”. A little too much excess here and there will pack on the pounds so to speak. I took the lesson to heart and I’m much better off as a result!
How I look at business expenses now
Though I’m certainly not perfect, my expenses for the business are extremely low. I carefully consider the costs of anything that forces me to open my wallet. I regularly compare prices from different vendors to make sure I’m giving myself the best deal possible.
The major things I look at are my vehicle insurance premiums, my healthcare costs, my chemical usage, my paper products, my landline and cell phones fees and my office supply costs. The money you spend here added together totals quite a bit!
I’ll wrap this up by sharing some success stories of mine. We once saved $465.00 per month by changing our health insurance policy. We got the same coverage, just for TONS less. This shaved $5,580.00 off my expenses in one fell swoop.
I’ve also switched vendors for paper products, which in some cases saves me 25% of what I used to spend. We even switched vehicle insurance and saved close to $200.00 per year. The LESS you spend the MORE you earn!
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